The housing market is becoming increasingly difficult for both home buyers and renters. With only 2.7 months of available housing supply for sale as of November 2022, it’s becoming more and more challenging to find a place to call home. Renters are also facing difficulties as the rental market is getting tighter and more expensive. To address these issues, real estate investors have come up with a solution called built-for-rent housing. Built-for-rent is a growing trend and is gaining more attention for its potential to provide a solution for housing market struggles.
The housing market has become increasingly challenging for both buyers and renters, with limited supply and rising costs. However, real estate investors have come up with a solution that offers a compromise between these two groups.
Built-for-Rent Housing: The New Solution for the Tight Housing Market
BFR, also known as “build-to-rent,” is a relatively new concept that aims to create a community of rental homes that operates like apartment buildings but offers the feeling of single-family homes. Unlike traditional rental properties, BFR communities offer a range of amenities such as leasing offices, fitness centers, and pools.
According to Ben Miller, the CEO of Fundrise, a real estate investment platform, built-for-rent communities can be designed to meet the specific needs of the geography, from densely populated urban areas to suburban areas. Miller adds that these communities can be designed for easy renovation and turnover, offering landlords an easier and more efficient option for managing single-family rentals.
Revolutionizing the Rental Market: How Built-for-Rent is Changing the Game
A recent study by Fannie Mae found that the majority of metropolitan areas in the US face a shortage of affordable single-family housing, with a cumulative shortage of 4.4 million units. Built-for-rent communities can help address this issue by providing more supply in the market faster, as they can be constructed all at once, without having to take into account the needs of individual homebuyers.
Built-for-rent communities are also attractive to tenants as they offer more flexible living options, such as community-wide solar systems, and opportunities for small commercial ventures, such as neighborhood cafes. The goal of built-for-rent is to create a community that can meet the needs of tenants, encouraging them to stay for longer periods.
In conclusion, BFR housing offers a solution to the affordable housing crisis, providing a balance between the needs of renters and landlords. With more built-for-rent communities emerging across the country, it has the potential to offer a flexible and affordable living option for many people.